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Everything you need to know about interest rates

Published 09/27/2024, 08:56 AM
Updated 09/27/2024, 09:01 AM
© Reuters. FILE PHOTO: Federal Reserve Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee in Washington, U.S., September 18, 2024. REUTERS/Tom Brenner/File Photo
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By Lauren Young

NEW YORK - This was originally published in the Reuters On the Money newsletter, where we share U.S. personal finance tips and insights every other week. Sign up here to receive it for free.

Even before the U.S. Federal Reserve approved its outsized half-percentage-point interest rate cut last week, financial markets started making credit cheaper for households and businesses as they bid down mortgage rates, cut corporate bond yields and chipped away at what consumers pay for personal, auto and other loans.

While bonds have been a good bet for investors at the start of the Fed's rate-cutting cycles, Treasuries already experienced a huge rally this time around. Some investors believe they're unlikely to run much further unless the economy enters a recession.

And stocks? So far they’ve been on a tear, but the long-term outlook is a little more complicated. Follow our Markets coverage here for the latest insights and news!

Has the latest rate cut helped or hurt your finances? Send me your thoughts at .

Life lessons: Sherri Shepherd’s path to Hollywood’s Walk of Fame

As a popular talk show host, Sherri Shepherd's job is to get celebrities to share their personal stories. But the most fascinating tale might be her own.

The host of Sherri, which kicked off its new season on Monday, has come a long way from the hardscrabble early days of getting evicted from her Los Angeles apartment as she tried to make it in show business.

My favorite quote from this Reuters’ interview: “I remember back in the days when my car used to get repossessed, I would be on the bus going by Hollywood Boulevard, where the Walk of Fame is located. I would look at the stars and dream that I would have a star one day. Now I’m having a ceremony for it. Never let go of that dream.”

What I’m reading and watching

Bananas, cars, clothes: US port labor dispute threatens products 

Housing market sees some relief as mortgage rates fall

Consumer confidence sours on labor market jitters 

Monthly house prices in the US edge up in July 

Want an under-30-minute commute? These American cities have it

Smart moves for investors after the Fed rate cute

US accuses Visa (NYSE:V) of monopolizing debit card swipes 

Going solo: How to plan for retirement when you’re on your own

Holiday spending on buy now, pay later to hit record due to debt-laden shoppers 

Like what you're reading? Subscribe to On The Money here.

In defense of consumer staples

The consumer staples sector has outperformed the wider market since the summer on recession worries and a shift away from pricier technology stocks. Satya Pradhuman of Cirrus Research explains why he thinks these stocks are no longer just a recession play. 

Watch here.

An expert's guide to retirement

If you find it hard to plan for retirement, here is a little secret: It is hard for everyone – even the world’s foremost experts on the topic.

Take Christine Benz, for example. As the longtime director of personal finance and retirement planning for investment research firm Morningstar, Benz knows pretty much everything there is to know on the subject.

But when her own father started experiencing cognitive decline, she assumed financial responsibilities for her parents – and was swarmed with hundreds of retirement-related challenges one cannot fully understand until experienced.

So Benz wrote a book about it, where she shares these five main pointers on how to retire.

A$K LAUREN

Thanks to everyone who wrote to me about taxing Social Security and rising pet care costs! I read every single one of your emails, so keep ‘em coming.

© Reuters. FILE PHOTO: Federal Reserve Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee in Washington, U.S., September 18, 2024. REUTERS/Tom Brenner/File Photo

Speaking of which: Do you need to take out a student loan? Are you planning to retire in the next year? Send your money questions to , and I'll tap my extensive source network and braintrust for expert advice.

Don’t forget to subscribe to this newsletter! Even better, share it with a friend! 

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